Genesis HealthCare receives two revised merger proposals, voting moved to May 18

By Lisa Kerner

Charlotte, N.C., May 10 - Genesis HealthCare Corp. received revised proposals from Fillmore Capital Partners, LLC and the affiliates of Formation Capital, LLC and JER Partners.

On May 8, Formation and JER increased the purchase price for Genesis to $67.50 per share in cash from $65.25 per share. If the transaction does not close before July 31, the purchase price would increase by about 9% per annum, or $0.01664 per day, from July 31 through Aug. 31, and by 10% per annum, or $0.01849 per day, from Sept. 1 until the transaction closes. This latest proposal expired at midnight ET on May 9.

On May 9, Fillmore upped its bid for Genesis to $69.00 per share in cash from $67.25 per share with no increase in price over time. This proposal remains in effect until 5 p.m. ET on May 15, according to a company news release.

Genesis HealthCare said its board is reviewing Fillmore's revised proposal and is in discussions with Formation/JER concerning its proposal. However, at this time, the board's recommendation in favor of the Formation/JER transaction as amended through May 1 is unchanged.

The company rescheduled its adjourned annual meeting to May 18 from May 11. Shareholders of record as of March 5 are entitled to vote at the annual meeting.

Genesis is a Kennett Square, Pa.-based provider of long-term care services and centers.

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